Indianapolis, Indiana – In a significant move for Indiana’s business climate, the Indiana House of Representatives has approved an amended version of Senate Bill 1. The bill, passed today by a vote of 65–29, includes crucial changes to the state’s business personal property (BPP) tax system. The amendment, which was introduced yesterday, modifies the scope of the reform, removing previous provisions that would have phased out the BPP tax entirely, but significantly enhancing the de minimis exemption threshold and narrowing the application of the 30% depreciation floor.
The updated legislation is seen as a pro-business reform that aims to reduce compliance burdens for businesses, particularly benefiting small- and medium-sized enterprises (SMEs) across Indiana. The changes are expected to provide a more attractive environment for capital investment, which could drive economic growth in both urban and rural parts of the state.
Vanessa Green Sinders, President and CEO of the Indiana Chamber of Commerce, expressed strong support for the amended bill. “This is a smart, pro-growth reform that will reduce compliance burdens and unlock investment across Indiana,” she said. “Increasing the de minimis threshold and exempting new equipment from the 30% depreciation floor directly benefits small- and medium-sized business owners in every corner of the state.”
The reform package focuses on easing the tax burden on businesses by making adjustments that will encourage investment in equipment and property. By increasing the de minimis threshold, the bill ensures that small businesses with relatively low levels of business personal property will be exempt from certain tax requirements. Additionally, the exemption of new equipment from the 30% depreciation floor is expected to offer direct financial relief to businesses looking to modernize or expand.
Sinders emphasized that these changes will have a broader positive impact on Indiana’s economy, fostering growth in key industries across the state. “Modernizing our personal property tax structure is essential to maintaining a competitive edge – particularly as neighboring states work to strengthen their own business environments,” she said. This reform positions Indiana to better compete for investment and talent, keeping it at the forefront of business development in the region.
One of the key arguments for the bill is the long-term economic benefits it is expected to bring to all Hoosiers, not just business owners. As businesses grow, they create higher-paying jobs, more employment opportunities, and generate increased tax revenues. These revenues, in turn, support critical public services that benefit the entire state. “When Indiana employers grow, the entire state benefits – through higher wages, more employment opportunities and increased revenues that support essential public services,” said Sinders.
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Despite some opposition, the Indiana Chamber of Commerce and other business groups are optimistic about the future of the bill as it moves forward. Sinders also took the opportunity to commend state leaders for their efforts in advancing the reform package. “We appreciate Governor Braun’s leadership and commend Speaker Huston and President Pro Tem Bray for advancing a forward-looking reform package that positions Indiana for long-term economic success.”
The next step for the legislation is to pass through the state Senate, where lawmakers are expected to review and finalize the bill. The Indiana Chamber of Commerce has urged the Senate to concur with the amendments and finalize the legislation, ensuring the continued competitiveness of the state’s business climate.
If the Senate approves the bill, Indiana will be better positioned to attract investments, support its small businesses, and maintain its status as a leading state for economic development. The legislation, if finalized, will be a crucial step toward creating a more robust and sustainable economy for all Hoosiers.
